Historical Volatility Percentile

Market Terms

We don't know everything about the markets.  We're just devoted to learning.  Taken from those smarter than ourselves, here's how we define Historical Volatility Percentile.

A measurement that tells you the percentage of trading days in the past year that had a lower volatility than the current volatility.  The Historical Volatility rises the more prices fluctuate.  However, it does not measure direction, it merely measures how much the security’s price has deviated from its average price.  Meaning if the historical volatility is rising, it means prices are moving up or down more quickly than usual.  This is a sign something is about to change.